Brazil’s new figures show a considerable increase in the country’s services sector which accounts for over 70% of the economy.
Services sector figures
Reuters released last week new figures about the services sector activity in Brazil. Official figures showed that Brazil is rising at the fastest pace in over a year. Numbers suggest that Latin America’s largest economy ended the third quarter on a strong footing.
The country’s services sector activity jumped in September. The 1.2% rise from August was the biggest month-on-month increase since August 2018 according to government statistics agency IBGE figures. It was almost twice the 0.7% rate of expansion expected in a Reuters poll of economists.
The service sector in Brazil accounts for over 70% of Brazil’s economy, the largest in Latin America, and the data would appear to tie in with recent purchasing managers index (PMI) figures.
IHS Markit’s composite PMI indicates that manufacturing and service sector index data over the July-September period point to third quarter GDP growth of around 0.8%. In effect, that would be double the 0.4% quarterly GDP growth posted in the second quarter of 2019.
Economy in Ceará
Between August 2018 and August 2019, Ceará’s economy expanded by 2.41%. The result shows that the investments made by the State Government and Fortaleza City Hall, as well as the services sector, mainly in tourism had a positive effect on the state of Ceará. In fact, from January to August 2019, economy in Ceará increased by 2.35%, surpassing the growth rates recorded in the Northeast (0.73% increase) and Brazil (0.66% increase).
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